Financial Disclosure - AZ SOS

Financial Disclosure

A Guide for Completing Financial Disclosure Statements

State Capitol, Phoenix

Published by the Office of the Secretary of State

December 2018

Arizona Secretary of State's Office Election Services Division

1700 W. Washington St., 7th Floor Phoenix, Arizona 85007

About this publication

"Financial Disclosure ? A

Guide for Completing

Financial

Disclosure

Statements" is a publication of

the Elections Division of the

Office of the Secretary of

State.

? 2018 by the Office of the Secretary of State. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means for a commercial purpose.

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Our office cannot offer legal

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on

document preparation. We

suggest consultation with an

attorney in such cases.

Contact us

The Hon. Katie Hobbs

Secretary

of

State 1700 W. Washington St.,

Fl. 7 Phoenix, AZ

85007-2808 Attention:

Elections Division

Telephone: (602) 542-8683 Toll Free: (877) 843-8683 Fax: (602) 542-6172 TDD: (602) 255-8683 Web site: Email: Elections@

Financial Disclosure

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Financial Disclosure

Table of Contents

1 Duty to File Financial Disclosure Statement ..................................................................... 1 1.1 Persons Required to File Financial Disclosure Statements........................................ 1 1.1.1 Public Officers ......................................................................................................... 1 1.1.2 Candidates for Elective Office.................................................................................2 1.2 Acquiring an Authorized Financial Disclosure Statement Form ...............................2 1.2.1 Statewide, Legislative and Judicial Public Officers and Candidates ......................2 1.2.2 Local Public Officers and Candidates .................................................................2 1.3 Deadlines for Filing A Financial Disclosure Statement .............................................3 1.3.1 Public Officers .........................................................................................................3 1.3.1.1 Annual Filing Requirement ..............................................................................3 1.3.1.2 Requirement for Newly-Appointed Public Officers.........................................3 1.3.2 Candidates for Elective Office .............................................................................3 1.4 Where to File a Financial Disclosure Statement.........................................................3 1.4.1 Public Officers .........................................................................................................3 1.4.2 Candidates for Elective Office .............................................................................4 1.5 Enforcement ................................................................................................................4 1.6 Laws Governing Financial Disclosure Statements .....................................................4

2 Completing a Financial Disclosure Statement ..................................................................5 2.1 Personal Financial Interests........................................................................................5 2.1.1 Sources of Personal Compensation .........................................................................5 2.1.2 Professional, Occupational and Business Licenses.............................................6 2.1.3 Personal Creditors ................................................................................................6 2.1.4 Personal Debtors ..................................................................................................6 2.1.5 Gifts ......................................................................................................................7 2.1.6 Offices, Positions or Fiduciary Relationships in Businesses, Nonprofit Organizations or Trusts .....................................................................................................7 2.1.7 Ownership or Financial Interests in Businesses, Trusts or Investment Funds ..7 2.1.8 Ownership of Bonds.............................................................................................8 2.1.9 Real Property Ownership .....................................................................................8 2.1.10 Travel Expenses ...................................................................................................8 2.2 Business Financial Interests .......................................................................................9 2.2.1 Business Names ...................................................................................................9 2.2.2 Controlled Business Information ....................................................................... 10

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Financial Disclosure

2.2.3 Dependent Business Information ...................................................................... 10 2.2.4 Real Property Owned by a Controlled or Dependent Business......................... 10 2.2.5 Controlled or Dependent Business' Creditors ................................................... 11 2.2.6 Controlled or Dependent Business' Debtors ..................................................... 11 3 Laws Governing Financial Disclosure ............................................................................. 13 3.1 Arizona Revised Statutes ........................................................................................... 13 3.2 Arizona Supreme Court Administrative Orders ........................................................ 17 3.3 Arizona Code of Judicial Administration .................................................................. 18 3.4 Arizona Code of Judicial Conduct............................................................................. 19

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Financial Disclosure

1 DUTY TO FILE FINANCIAL DISCLOSURE STATEMENT

1.1 PERSONS REQUIRED TO FILE FINANCIAL DISCLOSURE STATEMENTS

Two categories of persons are required to file Financial Disclosure Statements:

Public officers who hold a political or judicial office;1 and Candidates for elective office.2

Public officers and candidates file the same Financial Disclosure Statement form; the only difference is the time period covered by the Financial Disclosure Statement. 1.1.1 Public Officers

The following public officers must file an annual Financial Disclosure Statement with the Secretary of State's Office if he or she held office at any time during the past calendar year ed below:

A statewide public officer, whether elected or appointed;3 A member of the Arizona Legislature, whether elected or appointed;4 A justice or judge of the Arizona Supreme Court, Arizona Court of Appeals or Superior Court, whether

elected or appointed;5 and A full-time judge pro tempore, commissioner, or juvenile hearing officer serving the appellate courts or the

superior court.6

The duty to file a Financial Disclosure Statement applies even if a person did not serve as a public officer during the entire year. A Financial Disclosure Statement must be filed if during the previous year a person:

Qualified as a public officer but did not yet assume office;7 Was elected or appointed and began serving in office; or Served in public office but resigned, retired or left office for any reason.

1 A "public officer" is defined as "a member of the legislature and any judge of the court of appeals or the superior court, or a person holding an elective office the constituency of which embraces the entire geographical limits of this state." A.R.S. ? 38-541(8). A "local public officer" is defined as "a person holding an elective office of an incorporated city or town, a county or a groundwater replenishment district established under title 48, chapter 27." A.R.S. ? 38-541(6). 2 A.R.S. ? 18-444(D). 3 A.R.S. ? 38-541(8). 4 A.R.S. ? 38-541(8). 5 A.R.S. ? 38-541(8). Supreme Court justices are not expressly mentioned in statute but are required to file Financial Disclosure Statements by virtue of Ariz. Code of Jud. Conduct, Rule 3.15. 6 Ariz. Supr. Ct. Admin Order 2012-93; Ariz. Code Jud. Admin. ? 1-307. 7 A.R.S. ? 18-444(D). For example, a member of the Legislature "qualifies" as a public officer in November of the previous calendar year but does not assume office until January of the following year.

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Financial Disclosure

However, an exception exists for a public officer whose final term of office expires less than 31 days into the immediately following calendar year. In this case, a departing public officer may file his or her final Financial Disclosure Statement between January 1st and January 31st of the year in which they leave office instead of waiting for the following year.8 In other words, for those public officers whose final term will end in January, their annual Financial Disclosure Statement should cover the entire previous calendar year and include any financial activity from January 1st of the current year through the date the public officer officially leaves office. This allows departing public officers to take care of all remaining reporting obligations at once.

Local public officers are also required to file Financial Disclosure Statements.9

1.1.2 Candidates for Elective Office

A candidate for a statewide or legislative office must also file a Financial Disclosure Statement with the Secretary of State at the same time he or she files a nomination paper to run for public office.10 Federal candidates are exempt from filing a Financial Disclosure Statement with the Secretary of State's Office.11

Local candidates (other than precinct committeemen) are also required to file a Financial Disclosure Statement with the appropriate local filing officer.12

Filing a candidate-related Financial Disclosure Statement does not obviate the need to also file an annual Financial Disclosure Statement in accordance with the section outlined above.

1.2 ACQUIRING AN AUTHORIZED FINANCIAL DISCLOSURE STATEMENT FORM

1.2.1 Statewide, Legislative and Judicial Public Officers and Candidates Filing with the Secretary of State

The Secretary of State's Office has implemented an online wizard to facilitate completion of the Financial Disclosure form, which allows filer information to be stored from year-to-year for use in future filings. To complete and submit the form via the Secretary of State's Candidate Portal, please visit: go.CandidatePortal.

Public officers filing with the Secretary of State may reference their historical annual Financial Disclosure Statements here: go.FDSHistorical

1.2.2 Local Public Officers and Candidates

Local public officers and candidates should contact the appropriate clerk or election filing office for information on obtaining a local Financial Disclosure Statement form.

8 A.R.S. ? 18-444(D). 9 State law requires counties and incorporated cities and towns to adopt their own standards for Financial Disclosure Statements.9 Such jurisdictions may tailor their Financial Disclose Statements for local needs. A local public officer should check with the clerk or the filing office where candidates file nomination papers in a particular local jurisdiction for more information. 10 A.R.S. ? 16-311(H]); A.R.S. ? 16-312(C); A.R.S. ? 16-341(J); A.R.S. ? 38-543. 11 A.R.S. ? 38-541(8). 12 A.R.S. ? 16-311(H]); A.R.S. ? 16-312(C); A.R.S. ? 16-341(J); A.R.S. ? 38-543.

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1.3 DEADLINES FOR FILING A FINANCIAL DISCLOSURE STATEMENT

1.3.1 Public Officers

1.3.1.1 Annual Filing Requirement

A person who served as a public officer at any time during a calendar year must file an annual Financial Disclosure Statement between January 1st and January 31st of the following calendar year.13

However, an exception exists for a public officer whose final term of office expires less than 31 days into the immediately following calendar year. In this case, a departing public officer may file his or her final Financial Disclosure Statement between January 1st and January 31st of the year in which they leave office instead of waiting for the following year.14

1.3.1.2 Requirement for Newly-Appointed Public Officers

In addition to filing an annual Financial Disclosure Statement, a newly appointed public officer (whether as a judicial official or to fill a vacancy in a statewide or a legislative office) must file a Financial Disclosure Statement within 60 days of the date of assuming office.15 This Financial Disclosure Statement must cover the previous consecutive 12-month period, ending with the last full month prior to the date of assuming office.

If a public officer was appointed in January, he or she need only file one Financial Disclosure Statement because both the previous 12-month and annual reporting obligations will be satisfied. Otherwise, a newly-appointed public officer must file an annual Financial Disclosure Statement in January even if he or she recently filed a Financial Disclosure Statement upon appointment late in the previous calendar year.

1.3.2 Candidates for Elective Office

A candidate for elective office (other than a candidate for federal office or precinct committeeman) must file a Financial Disclosure Statement at the same time he or she files a nomination paper.16 For a candidate seeking nomination through a primary election, the nomination paper typically must be filed 90 days before the election.17

A judicial applicant for merit selection to the Superior Court does not need to file a Financial Disclosure Statement in conjunction with such application.

1.4 WHERE TO FILE A FINANCIAL DISCLOSURE STATEMENT

1.4.1 Public Officers

The following public officers must file an annual Financial Disclosure Statement (or a Financial Disclosure Statement within 60 days of being newly appointed as a public office) with the Secretary of State's Office:

A statewide public officer, whether elected or appointed;18

13 A.R.S. ? 18-444(D). 14 A.R.S. ? 18-444(D). 15 A.R.S. ? 18-444(D). 16 A.R.S. ? 16-311(H]); A.R.S. ? 16-312(C); A.R.S. ? 16-341(J); A.R.S. ? 38-543. 17 A.R.S. ? 16-311(A); but see A.R.S. ? 16-312(B) (write-in candidates); A.R.S. ? 16-951(B) (statewide and legislative candidates seeking public funding).

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A member of the Arizona Legislature, whether elected or appointed;19 A justice or judge of the Arizona Supreme Court, Arizona Court of Appeals or Superior Court, whether

elected or appointed;20 and A full-time judge pro tempore, commissioner, or juvenile hearing officer serving the appellate courts or the

superior court21.

A local public officer must file a Financial Disclosure Statement with the filing officer designated by local charter, ordinance, or resolution.

1.4.2 Candidates for Elective Office

A statewide or legislative candidate must file a Financial Disclosure Statement with the Secretary of State's Office.22

A local candidate (other than a candidate for precinct committeeman) must file a Financial Disclosure Statement with the officer in charge of elections with whom nomination papers must be filed for the office in question.23

1.5 ENFORCEMENT

Upon referral by the Secretary of State, the Attorney General enforces the filing requirement against statewide, legislative or judicial public officers who fail to file by the statutory deadline.24 Enforcement may include a civil penalty of $50 for each day the Financial Disclosure Statement is late (up to $500) until the Statement is filed.25 Failure to file a Financial Disclosure Statement at the local level may result in referral to a local enforcement officer.

In addition, any public officer or candidate found to have knowingly filed an incomplete or a false Financial Disclosure Statement may be found guilty of a class 1 misdemeanor.26

Please note, the Secretary of State's Office or other local officer in charge of elections may refuse to accept a nomination paper from a candidate who fails to file an accompanying candidate-related Financial Disclosure Statement.27

1.6 LAWS GOVERNING FINANCIAL DISCLOSURE STATEMENTS

Arizona Revised Statutes ? 18-444, ? 38-541, and ?? 38-543 to 38-545 govern Financial Disclosure Statements for public officers.

18 A.R.S. ? 38-541(8). 19 A.R.S. ? 38-541(8). 20 A.R.S. ? 38-541(8). Supreme Court justices are not expressly mentioned in statute but are required to file Financial Disclosure Statements by virtue of Ariz. Code of Jud. Conduct, Rule 3.15. 21 Ariz. Supr. Ct. Admin Order 2012-93; Ariz. Code Jud. Admin. ? 1-307. 22 A.R.S. ? 16-311(E). 23 A.R.S. ? 15-393(A)(4), (C)(5); A.R.S. ? 15-422(A); A.R.S. ? 15-431(B)(6); A.R.S. ? 15-1442(A); A.R.S. ? 16-311(F). 24 A.R.S. ? 38-544(B) (indicating the violations will be enforced according to the same standards as campaign finance complaints); see also A.R.S. ?? 16-937 to 16-938 (campaign finance enforcement provisions). 25 A.R.S. ? 38-544(B). 26 A.R.S. ? 38-544(A). 27 A.R.S. ? 16-311(H)(1).

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